Financial Services Commission Orders Mugunghwa Trust to Improve Management...First imposition of PF insolvency

Financial authorities have ordered Mugunghwa Trust, the sixth-largest real estate trust industry, to improve its management.

This is the first timely corrective action related to the aftermath of real estate project financing and PF insolvency that has continued since the second half of last year.

The management improvement order is the highest level of timely corrective measures issued by financial authorities to financial companies that fall short of certain standards due to deteriorating financial soundness.

With this measure, the Mugunghwa Trust should carry out its own normalization, such as a paid-in capital increase, and take over a third party after objective due diligence, and submit a management improvement plan reflecting this by January 24 next year.